Three variants of Tesla Model X have been launched in the Chinese car market. Deliveries for Tesla vehicles will start by the end of this month. The three models that have been launched include the Model X 90D, the Model X P90D and Model X P90D Signature Red edition.
The last model is exclusive for China only. There is one more model named the Model X 75D base model, which is currently not available in China, but could be added to the lineup later. The first model is available for 961,000 yuan, the P90D for 1.15 million yuan and the signature model would cost 1.47 million yuan.
Chinese buyers would be required to deposit 100,000 yuan when they will book their choice of Model X. The difference in price is due to import taxes and healthy entrepreneurship. But it seems that Chinese car buyers are ready to pay the price. They just want to get their hands on a Tesla, especially the new Model X, which has an SUV model, considered to be the most popular body study in China.
When it comes to price, Model X competes with cars like Audi Q7, the BMW X5, the Porsche Cayenne, the Range Rover Sport, the Volkswagen Touareg, and the Volvo XC90. The deliveries will first start in Beijing and Shanghai, which are considered to be the largest markets of China and then in rest of the nation.
In China, Tesla owns 18 stores, four in Beijing, four in Shanghai, and one in Hong Kong and the rest of the stores are spread in the entire nation. Tesla is said to be working on a large facility, but closer to home. Tesla has 98 supercharger stations in China.
According to a story published on the topic by LearnBonds, “Tesla Motors Inc holds a huge lead in the luxury EV market. The U.S. EV maker is said to have a billion dollar head start on anyone who would hope up to challenge it right now. Though plagued with many obstacles in its production and finances, the firm’s flagship EV, the Model S sedan, reigns supreme as America’s best selling luxury car. The gap between the Model S and its high priced rivals seems to be growing. This stems from the exclusive auto brand’s growing demand.”
Tesla Motors Inc is notorious for being late in delivering on its ambitious promises. The Model X SUV is but one of the few exceptions to its trend, but even that car didn’t arrive without a hitch. Bearing this, we don’t have much to support the claim that Tesla can produce a 215-mile, “5-star in all aspects” luxury EV for the initial going price $35,000, one that can deter buyers from their Audis and BMWs to boot. But research reveals that Musk’s claim may just be true. The Model 3 could only further widen the gap between Tesla and its premium car competitors.
“How will Tesla Motors finance all the highly ambitious, capital intensive projects it is committed to at the moment? The company has a little over $1.4 billion in cash on hand, but preparing to build up to 200,000 Model 3 cars as early as next year, continuing construction of the Gigafactory, building new sales and service locations, and aggressively expanding its network of Supercharger locations will eat up far more than that,” according to a recent Gas2 News report.
Tesla took in nearly $400 million in cash from Model 3 reservation fees in April, but Elon Musk says that money should not be used to pay capital expenses, especially since all of those deposits are refundable. “I don’t think we want to rely too much on customer reservation money as a source of capital,” he said during the first-quarter earnings call with analysts. “Maybe there is a buffer or something, but it’s not as a primary source of capital. I think it’s going to make sense for us to raise some amount of money – some combination of equity and debt – and make sure the company has a good buffer of cash on hand. I think it’s important for de-risking the company.”
A report published in Forbes News informed, “The Tesla Model X has been launched on the Chinese car market, with deliveries set to start later this month. There are three variants available: the Model X 90D, the Model X P90D, and the China-only Model X P90D Signature Red edition. The Model X 75D base model is not available in China, but might be added to the lineup later.”
The enormous difference is caused partly by import taxes, counting for about one third of the price, and partly by healthy entrepreneurship. Chinese car buyers are very eager to pay more to get their hands on a Tesla, especially on the new Model X, which is after all an SUV, the most popular body style in China. Price wise the Model X competes with cars like the Audi Q7, the BMW X5, the Porsche Cayenne, the Mercedes-Benz GLE, the Range Rover Sport, the Volkswagen Touareg, and the Volvo XC90.